US Expands Financial Pressure Campaign Against Iran

US Treasury Secretary Scott Bessent said the United States is likely to announce new secondary sanctions against entities linked to Iran every week, beginning with banks. The measures are intended to increase economic pressure on Tehran by threatening foreign financial institutions that continue to handle Iranian funds or support the Iranian regime. The comments followed the Treasury Department’s Aug 28 penalties against United Arab Emirates branches of Egypt’s Banque Misr, which Washington accused of having financial links to Iran. Bessent said the next escalation could involve completely cutting an institution off from the dollar-based financial system, a potentially severe punishment because of the dollar’s central role in global finance. Ahead of a meeting of G-20 finance ministers and central bank governors, Bessent said he would urge other countries to sever economic ties with Iran or risk facing secondary sanctions themselves. The Treasury’s campaign, called Operation Economic Outcast, was launched the previous week. Bessent emphasized that the US wanted to prevent any “leakage” in its sanctions regime, framing the policy as a choice between cooperating with Washington or continuing to deal with Iran. He rejected criticism that the sanctions would be ineffective unless Chinese companies involved in Iranian oil purchases were also targeted. Bessent argued that US action against Iranian ports had already curbed most Chinese purchases of Iranian oil and that the volume of Iranian crude held in tankers was declining. He characterized the issue as resolved. The article presents the policy as a widening US effort to isolate Iran financially, while noting the potential for pressure on banks, international economic relationships and countries that continue commercial ties with Tehran.

The United Arab Emirates’ central bank has launched a special and urgent investigation into Banque Misr’s UAE branches after the US Treasury Department moved to cut them off from the American financial system over alleged links to Iran’s sanctions-evasion network. The inquiry will examine transactions conducted during the more than two-year period identified by US authorities, from January 2024 through June 2026, with particular attention to 103 companies named in the US announcement. The US Treasury described Banque Misr UAE as “a critical node” in Iran’s access to US dollars and estimated that the bank processed approximately US$1.8 billion for the companies, which it said may be part of Iranian shadow banking networks. The US measure was announced on Aug 28 as part of broader sanctions against Iran. The UAE central bank said its review would be forensic and in-depth, focusing on the transactions of the companies cited by the US. It also warned that UAE-licensed banks should not expose the country’s financial system to reputational risks. The regulator is considering options for Banque Misr’s status in the UAE if the US measure takes effect, while taking account of the bank’s obligations to its local customers. Banque Misr said it fully respects the investigation, applicable laws and regulatory processes, and will cooperate with the authorities. It added that it would continue providing banking services to customers. The investigation does not establish that the bank violated sanctions, but it follows serious allegations by the US and could create regulatory, operational and reputational consequences for the Egyptian bank’s UAE operations.

The United States plans to sanction another bank this week as Washington intensifies efforts to economically isolate Iran, according to Treasury Secretary Scott Bessent. Speaking to The Associated Press and Reuters, Bessent declined to identify the institution but warned that further measures could include cutting banks off entirely from the dollar-based financial system. He said the United States was targeting banks that hold Iranian funds or assist the Iranian government, describing the campaign as a form of “financial violence.” The planned action follows Washington’s recent decision to exclude the United Arab Emirates’ operations of Basque Misr from the US financial system after accusing Egypt’s second-largest bank of conducting business with the Iranian government. The Treasury Department also recently sanctioned nearly 60 individuals and entities alleged to help Iran generate oil revenue, acquire weapons and conduct cyber-operations. The broader campaign, called “Operation Economic Outcast,” is taking place amid stalled truce negotiations between the United States and Iran. Iran has rejected the new sanctions. Finance and Economic Affairs Minister Ali Madanizadeh said the measures would fail. Meanwhile, violence resumed on Sunday after a pause since late July. Iran launched missiles at two US bases in Jordan following a US attack on Larak Island in southern Iran, adding a military escalation to the economic confrontation. Bessent is also preparing to host finance ministers and central bank officials from the Group of 20 in Asheville, North Carolina. He plans to encourage international cooperation against Iran and discuss the possibility of further sanctions with Chinese officials. Bessent said “all options are on the table” regarding China’s continued trade with Tehran, while rejecting claims that Washington is unwilling to confront Beijing. He maintained that China and the United States agree on reopening the Strait of Hormuz and preventing Iran from developing a nuclear weapon.